Debt Lawsuit Defense

On occasion creditors may choose to pursue a suit to collect on unpaid debt. Most often this will be either a garnishment of wages, seizure of property and other assets, or a combination of both. As the repercussions to losing a debt lawsuit are serious, your first course of action should be to talk to a debt lawsuit attorney as soon as possible. The most important thing to do is not panic and understand that there are a variety of defenses to creditor lawsuits and also options to negotiate a preferential settlement payment schedule even after the lawsuit has been filed.

After speaking with a qualified debt defense attorney, the next step is to begin collection of all correspondences that have been sent to date. As there are a variety of defenses available to you, its best to be aware of what to look for:

• THE LAWSUIT WAS NOT BROUGHT IN A TIMELY MANNER.

  In the case of time-barred debts, if the creditor waited too long to file the lawsuit, then they have exceeded the statute of limitations and can no longer sue to collect and may be in violation of FDCPA.

• PROPERTY WAS DAMAGED WHEN DELIVERING THE GOODS OR SERVICES.

  If the creditor damaged your property and you refused to make payment, this may be grounds for a counterclaim in excess of what you have been sued for.

• NO RELATIONSHIP WITH THE CREDITOR.

  If suit is filed by a debt buyer and not your original creditor, you have the right to challenge their right to sue you as you have no agreement directly with them.

• THE GOODS OR SERVICES WERE DEFECTIVE.

  Most any goods or services come with an implied warranty and if they didn’t function or perform as intended can be a substantial defense against suit.

• THE AMOUNT OF DEBT IS INCORRECT.

  If you believe the amount you are being sued for is in excess of what it should be, the plaintiff has the burden to prove that all debt, interest, and costs are correct and in fact you have the right to request receipts.

• IMPROPER SERVICE.

  Each state has very specific laws as to how a summons or complaint must be delivered to you and if done improperly can result in a dismissal of the case.

• YOU WERE AN AUTHORIZED USER.

  If you are being sued for credit debt where you were not the primary account holder or cosigner, then you cannot be responsible for the debt.

• BANKRUPTCY.

  If you had declared bankruptcy in the past and the debt that you are being sued for was discharged as a part of the bankruptcy proceeding, you can not be sued for it.